Is HOA insurance enough?

6 Replies

I know with my monthly HOA fee there is some sort of insurance included. Is there any additional insurance I should have ? The unit is currently rented so I don't believe I would need "homeowners insurance". But in the event of something happening would I be expected to pay out of pocket ?

Any info would help!

First their insurance will most likely not cover any liability within your unit so you'll need insurance for that. Also on most condos or townhouses generally the COA's policy only covers the structure and not the finishes (so anything on your side of the drywall would be on you to replace in the event of a loss). You'd have to read the specific policy but generally you will need additional insurance, although you will need a lower amount of property coverage.

@Patrick L. Is correct. If this is a true "condo" setup, the association is typically only responsible for the structure and each unit owner is responsible for the "walls in" or some variation. Read the agreement to confirm, but you should purchase a landlord type policy for a condo. Be sure there is coverage for dwelling or also referred to as additions & alterations. You may also need personal property coverage for furnishings. Your insurance broker should be able to walk you through this and explain the coverage.

As also mentioned, you will want adequate liability coverage on the policy.

You need interior insurance. The HOA insurance only goes as far as the exterior, and maybe interior common areas. A fire or flood in your unit are all on you unless you can prove someone else caused it and that someone better have insurance. Even a little kitchen fire can be thousands of dollars. The good news is condo policies are pretty cheap, at least where I am. Buy a high deductible if you're not that worried and can come out of pocket if something were to happen.

One other thought: Make sure you buy enough insurance. I bought a condo policy two weeks ago and the agent's quote was for only $10K interior damage. The condo is worth $80K+ and is 800 square feet. $10K goes fast when making interior repairs. I had him bump it up to $25K but I asked for higher deductible to keep the premium cost low.

Josh , Condo Insurance Coverage needs can be illusive.

As mentioned by others, there are liability exposures both

in and around your unit that will not be clearly covered by

the Association's Master Policy. Leaks,"Spreading fire"

,storm damage penetrating to the inside",Slip andFall " at

the doorway-just to name a few.

Also there should be a review of your Condo "Docs" to be

sure what the condo's responsibilities are. Some exclude

windows ,doors,even Roofs! There are no required coverages

other than what your particular "Docs" call for!

All that aside, you have to remember that you are only

insuring for the value of "walls-In" materials ,appliances ,

personal contents, and non- covered items talked about

above. Check your Doc's, Master Insurance Policy, get

the advice of an insurance agent who is versed in

"owners Policies". Best for success!

I have 2 additional policies

1) renter's insurance with my name as the additional insured

2) a separate policy for myself as the condo owner.

Thank you everyone for the info .. Going to inquire for more info from the HOA today !

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